Asked by Layton Bicanovsky on Jun 06, 2024
Verified
If net investment is 600,depreciation is 200,and indirect business taxes are 100,how much is gross investment
Gross Investment
The total amount of money spent on capital goods, or assets intended to produce future income, not accounting for depreciation.
Net Investment
The total amount spent on capital assets, like buildings and machinery, minus depreciation. It reflects the increase in the value of physical assets.
Depreciation
The gradual decrease in the economic value of the capital assets of a firm or nation due to wear and tear, obsolescence, or age, often accounted for in financial statements through depreciation expense.
- Calculate gross investment given net investment, depreciation, and indirect business taxes.
Verified Answer
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Learning Objectives
- Calculate gross investment given net investment, depreciation, and indirect business taxes.